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Sweeten Company had no jobs in progress at the beginning of the year and no beginning inventories. It started, completed, and sold only two jobs during the year-Job P and Job Q. The company uses a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, it estimated that 4,000 machine-hours would be required for the period's estimated level of production. Sweeten also estimated $29,400 of fixed manufacturing overt cost for the coming period and variable manufacturing overhead of $2.80 per machine-hour. Because Sweeten has two manufacturing departments-Molding and Fabrication-it is considering replacing its plant overhead rate with departmental rates that would also be based on machine-hours. The company gathered the follow additional information to enable calculating departmental overhead rates: Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Estimated total machine-hours used Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour The direct materials cost, direct labor cost, and machine-hours used for Jobs P and Q are as follows: Job P $ 24,000 $ 29,800 Foundational 2-1 (Algo) Molding Fabrication 2,500 $ 12,750 $2.50 2,800 1,700 4,500 Job Q $ 13,500 $ 11,900 1,900 2,000 3,900 Total 1,500 $ 16,650 $ 3.30 4,000 $ 29,400 Total Sweeten Company had no overapplied or underapplied manufacturing overhead costs during the year. Required: For questions 1-8, assume that Sweeten Company uses a plantwide predetermined overhead rate with machine-hours the allocation base. For questions, 9-15, assume that the company uses predetermined departmental overhead rates machine-hours as the allocation base in both departments. . What is the company's plantwide predetermined overhead rate? (Round your answer to 2 decimal places.)

Sweeten Company had no jobs in progress at the beginning of the year and no beginning inventories. It started, completed, and sold only two jobs during the year-Job P and Job Q. The company uses a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, it estimated that 4,000 machine-hours would be required for the period's estimated level of production. Sweeten also estimated $29,400 of fixed manufacturing overt cost for the coming period and variable manufacturing overhead of $2.80 per machine-hour. Because Sweeten has two manufacturing departments-Molding and Fabrication-it is considering replacing its plant overhead rate with departmental rates that would also be based on machine-hours. The company gathered the follow additional information to enable calculating departmental overhead rates: Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Estimated total machine-hours used Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour The direct materials cost, direct labor cost, and machine-hours used for Jobs P and Q are as follows: Job P $ 24,000 $ 29,800 Foundational 2-1 (Algo) Molding Fabrication 2,500 $ 12,750 $2.50 2,800 1,700 4,500 Job Q $ 13,500 $ 11,900 1,900 2,000 3,900 Total 1,500 $ 16,650 $ 3.30 4,000 $ 29,400 Total Sweeten Company had no overapplied or underapplied manufacturing overhead costs during the year. Required: For questions 1-8, assume that Sweeten Company uses a plantwide predetermined overhead rate with machine-hours the allocation base. For questions, 9-15, assume that the company uses predetermined departmental overhead rates machine-hours as the allocation base in both departments. . What is the company's plantwide predetermined overhead rate? (Round your answer to 2 decimal places.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Sweeten Company had no jobs in progress at the beginning of the year and no beginning inventories. It started, completed, and sold only two jobs during the year-Job P and Job Q. The company uses a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, it estimated that 4,000 machine-hours would be required for the period's estimated level of production. Sweeten also estimated $29,400 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $2.80 per machine-hour. Because Sweeten has two manufacturing departments-Molding and Fabrication-it is considering replacing its plantwide overhead rate with departmental rates that would also be based on machine-hours. The company gathered the following additional information to enable calculating departmental overhead rates: Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total Estimated total machine-hours used Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour The direct materials cost, direct labor cost, and machine-hours used for Jobs P and Q are as follows: Foundational 2-1 (Algo) Job P $ 24,000 $ 29,800 Predetermined overhead rate Molding 2,500 $ 12,750 $2.50 2,800 1,700 4,500 per MH Job Q $ 13,500 $ 11,900 Fabrication 1,500 $ 16,650 $ 3.30 1,900 2,000 3,900 Total Sweeten Company had no overapplied or underapplied manufacturing overhead costs during the year. Required: For questions 1-8, assume that Sweeten Company uses a plantwide predetermined overhead rate with machine-hours as the allocation base. questions, 9-15, assume that the company uses predetermined departmental overhead rates with machine-hours as the allocation base in both departments. 4,000 $ 29,400 1. What is the company's plantwide predetermined overhead rate? (Round your answer to 2 decimal places.)
Transcribed Image Text:Sweeten Company had no jobs in progress at the beginning of the year and no beginning inventories. It started, completed, and sold only two jobs during the year-Job P and Job Q. The company uses a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, it estimated that 4,000 machine-hours would be required for the period's estimated level of production. Sweeten also estimated $29,400 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $2.80 per machine-hour. Because Sweeten has two manufacturing departments-Molding and Fabrication-it is considering replacing its plantwide overhead rate with departmental rates that would also be based on machine-hours. The company gathered the following additional information to enable calculating departmental overhead rates: Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total Estimated total machine-hours used Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour The direct materials cost, direct labor cost, and machine-hours used for Jobs P and Q are as follows: Foundational 2-1 (Algo) Job P $ 24,000 $ 29,800 Predetermined overhead rate Molding 2,500 $ 12,750 $2.50 2,800 1,700 4,500 per MH Job Q $ 13,500 $ 11,900 Fabrication 1,500 $ 16,650 $ 3.30 1,900 2,000 3,900 Total Sweeten Company had no overapplied or underapplied manufacturing overhead costs during the year. Required: For questions 1-8, assume that Sweeten Company uses a plantwide predetermined overhead rate with machine-hours as the allocation base. questions, 9-15, assume that the company uses predetermined departmental overhead rates with machine-hours as the allocation base in both departments. 4,000 $ 29,400 1. What is the company's plantwide predetermined overhead rate? (Round your answer to 2 decimal places.)
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